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www.h2fcsupergen.com Zeynep Kurban, PhD FCH2 Technical Conference 14 th March The H2FC Hub: Identifying the opportunities for Hydrogen and Fuel Cells in the UK

The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

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Page 1: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

www.h2fcsupergen.com

Zeynep Kurban, PhDFCH2 Technical Conference 14th

March

The H2FC Hub: Identifying the

opportunities for Hydrogen and Fuel

Cells in the UK

Page 2: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

H2FC SUPERGENAims and Objectives

SUPERGEN is part of the UK Energy Programme’s Sustainable Power Generation and

Supply initiative (SUPERGEN).

that enables the application of hydrogen and fuel cells in the energy landscape

Transformational Research

of the roles and benefits of hydrogen and fuel cell technologies

Informing Stakeholders

between the academic research base and industry, builds partnerships across the sector

Building Networks

The Hydrogen and Fuel Cells (H2FC) SUPERGEN hub, funded by the Research Council’s UK Energy Programme(May 2012-April 2019).

Three primary functions:

Page 3: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Hub Research

21 UK + 8 International Universities, £20m over 7 years

CoreHubResearchUniversities

OtherUKUniversitieswithHubProjects

InternationalPartnerUniversities

Page 4: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

H2FC Supergen Research Hub

Page 5: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Four evidence based White Papers

Launched at the London City Hall in

March 2017

low-carbon heat energy security future energy

systems

economic impact

for the UK

To inform key stakeholders, especially policy makers, of the roles and potential benefits of

hydrogen and fuel cell technologies for meeting UK energy objectives.

Page 6: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Methods

1. Reviews of the technical, academic and commercial literature.

2. Engagement with core industry stakeholders.

3. Targeted analyses (e.g. comparative analysis of heating technologies complemented by scenario building using UK Times Model)

UK CO2 reduction Targets (compared to 1990 levels): 80% CO2 reduction by 2050 50% reduction by 2025 and 57% by 2030.

Page 7: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Decarbonising Heat…

Hy4Heat

H21 Leeds City Gate Study

HyDeploy(Keele Uni.)

Hy4House

Liverpool Manchester

Cluster

Hydrogen Upstream of the

meter

£25m BEIS research and Innovation Programme

£10m NIC award to GDNOs led by NGN

Demonstration Studies

Page 8: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Future energy systems

Examine the potential contribution of hydrogen and fuel cell systems to: Transport.

Heat.

Electricity.

Consider the infrastructure requirements.

How might a transition to these systems occur?

Concludes that hydrogen and fuel cells:

are too important to neglect;

make decarbonisation easier; and,

need greater policy visibility.

Page 9: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

H2FC Infrastructure

Page 10: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Least Cost: the lowest-cost method of achieving the GHG target based on input assumptions.

Critical Path: the hydrogen option is kept open to 2030 through small investments in infrastructure and road vehicles; deployment ramps up in 2050 for strategically important end uses (transport and electricity).

Gas Conversion: gas networks are converted to deliver hydrogen; homeowners choose between low-carbon heating and transport technologies primarily on cost.

Full Contribution: hydrogen is taken up across the economy; hydrogen boilers and hybrid heat pumps heat most houses by 2050; almost all road vehicles use fuel cells; substantial contributions from hydrogen in industry and electricity generation as well.

No Hydrogen: a counterfactual scenario that is the same as Least Cost, except that no hydrogen technologies are available.

Electrification: a counterfactual scenario with widespread electrification of end-use technologies that relies primarily on renewable generation.

Scenarios

Page 11: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Hydrogen consumption by sector, in the six scenarios to 2050

Least Cost: the lowest-cost method of achieving the GHG target based on input assumptions

Critical Path: deployment ramps up in 2050 for strategically important end uses (transport and electricity).

Full Contribution: hydrogen is taken up across the economy; 50% of end-use demand is met by hydrogen in 2050

No Hydrogen: a counterfactual scenario that is the same as Least Cost

Electrification: a counterfactual scenario with widespread electrification of end-use technologies that relies primarily on renewable generation.

Targeted analyses using UK Times Model

Page 12: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Final UK energy consumption in 2050, in the six scenarios

Page 13: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Energy conversion costs for different scenarios

1/10 of final energy consumption from H2

H2 ½ of final energy consumption from H2

gas networks converted to deliver H2

for strategically important end uses

Mostly electrical

Page 14: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Energy security

How might hydrogen and fuel cells affect energy security in the UK energy system? Can they improve it? Would they worsen it?

Conclusions:

Using hydrogen would not greatly change energy security, as measured by various indices – and the diversity of the energy system could increase.

Using hydrogen could reduce the impacts of volatile energy import prices.

The resilience of the UK electricity system could be increased by reducing the impacts of infrastructure damage (by natural incidents as well as malevolent interference).

Page 15: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Energy Security Definition(s)

cost to consumercost to society (taxpayer)

resiliencerobust to incidents robustness

long-term stability

long-term perspectivesecure investment framework

Page 16: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Cost to increase diversity and resource independence in 2050

All costs are relative to the smallest increase in costs required to meet the

UK 80% GHG reduction target in 2050 in an unconstrained scenario in the

UK TIMES Model (UKTM), relative to the reference scenario with no GHG

targets. So this unconstrained scenario has a cost = 1.0.

BaseHigh

diversityIndependence

High diversity and independence

Full contribution 2.3 2.3 6.0 6.3

Critical path 1.2 1.2 4.8 5.0

No hydrogen 1.1 1.2 4.8 5.0

Page 17: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Economic Impacts

An early assessment of the scale and type of impact hydrogen and fuel cell technologies could have on the UK macro-economy

Uses input-output modelling to examine economy-wide impacts of building new supply chains for these technologies and reducing supply chains for incumbent systems.

Considers economic (£m) and employment impacts (with Consumer Road Transport as an exemplar)

Wider issues such as skills and industrial clusters are also examined.

This is a preliminary study – there is much scope to develop the methodology to examine economic implications of energy technologies and an industrial strategy in the future.

Page 18: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

What is a Multiplier?

Input-output - Multiplier Diagram

Page 19: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Relative values (UK) – Hydrogen

You are a potential hydrogen supplier

We burn hydrogen for heat (assume 100% conversion efficiency) Apply approximate fuel cell conversions (losses) to generate relative values for electricity

production and transport applicationsThat gives a modified hydrogen value ratio set of:

Heat Electricity Transport

Cost of Energy (based on efficiency of

device)

4.18p /kWh 13.86p /kWh 41p /kWh

Relative H2 value 1 1.6 3.9

Based on what you know consumers expect to pay for heat, electricity and transport,

In which market space are you most likely to make a good margin?

Not indicative of what H2 might cost

Page 20: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Approach: input-output modelling

Input-output data are produced as part of the UK National Accounts (ONS 2016), under United Nations System of National Accounts (SNA 1993).

The UK (industry by industry) input-output tables (2010): is a matrix describing the structure of the economy in a given year in terms of 103 industries (identified by the Standard Industrial Classification, SIC 2007).

Page 21: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Headline message of input-output modelling

A significant move away from current UK use of refined fuels in private transport towards hydrogen can yield a valuable increase in GDP and employment

The likely gains will come not only from the production and distribution of hydrogen in the UK but also from the range of service sector activities, including finance, involved in a potentially strong domestic supply chain.

Key driver of findings: the current supply chain for petrol and diesel is highly import-intensive.

Page 22: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Where will H2 come from?

Page 23: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Conclusions from input-output economic modelling

Importance of domestic (UK) supply chain linkages in delivering economic expansionthrough multiplier effects

If hydrogen supply could replicate the strong domestic upstream supply linkages of thecurrent UK gas and electricity supply sectors, opportunities for economic expansionthrough a hydrogen transport economy

However, much will depend on the continued role of fossil fuel extraction from the UK oiland gas extraction industry

Attention in development of the skills base in UK service industries

Potential additional impacts from private and public investment targeted at R&D,construction etc., but impacts may be time-limited (as opposed to on-going operational)

Page 24: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Recent publications

Page 25: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

H2 & FC Uptake targets

UK in top 10 countries globally in terms of numbers of hydrogen and fuel cell publications

2nd only to Germany in terms of average citations per article.

Ref: The role and status of hydrogen and fuel cells across the global energy system, I. Staffell et al.

Page 26: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

ISCF – Innovate have issued an EOI (closing date 18 April) inviting proposals on the potential future challenges to get support through the Industrial Strategy Challenge Fund

Mission based innovation:

Prof Marina Mazzucato (UCL)

IEA Hydrogen Tasks:1) Market Deployment & Pathways to Scale

2) Hydrogen in Industry and Buildings

Industrial Strategy Challenge Fund

Page 27: The H2FC Hub: Identifying the opportunities for Hydrogen ... · If hydrogen supply could replicate the strong domestic upstream supply linkages of the current UK gas and electricity

Download the four White Papers:

www.h2fcsupergen.com

Contact me or authors:

[email protected]

Editors and authors:

Paolo AgnolucciOluwafisayo Alabi

Naser Al-MufachiPaul E. DoddsPaul EkinsPhilipp GrünewaldAdam HawkesNick HughesJohn T. S. IrvineOwain JonesTia KansaraZeynep KurbanFrancis Li

Thank you!

Niall Mac DowellWill McDowallLazaros PapageorgiouJonathan RadcliffeDaniel ScammanNilay ShahMartin J. SmithIain StaffellRobert Steinberger-WilckensKaren TurnerAnthony Velazquez AbadKate Ward